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Student-Centered Issues of Transitioning to Direct Lending

Student-Centered Issues of Transitioning to Direct Lending. Betsy Johnson Owens Community College Randy J. Ulses University of Cincinnati. D(L) Day: July 1, 2010. FFEL program no longer exists All loans must be transmitted as Direct Lending Federal Subsidized and Unsubsidized Loans

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Student-Centered Issues of Transitioning to Direct Lending

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  1. Student-Centered Issues of Transitioning to Direct Lending Betsy Johnson Owens Community College Randy J. Ulses University of Cincinnati

  2. D(L) Day: July 1, 2010 FFEL program no longer exists All loans must be transmitted as Direct Lending Federal Subsidized and Unsubsidized Loans Federal Graduate PLUS Loans Federal Parent PLUS Loans

  3. New to DL Issues – Processing Issues System transition Updates Transmission process Division of tasks/responsibilities Within financial aid Between financial aid and other offices Summer 2010 concerns Post 7/1 loans if summer is a trailer

  4. New to DL Issues – Student Issues Understanding Process change for returning students New students What is all the fuss? Sibling issues Process completion New MPNs Loan counseling – if you plan to require for returning Where are my loans?

  5. Case Study – Owens Public 2-year Founded 1965 Location Toledo Campus Findlay Campus 2 learning centers (SOURCE downtown and Arrowhead Maumee) 23,606 (2009) 16,500 aid recipients $112 Million 12 (1 part-time) plus Oserve (one-stop shop)

  6. Transition to DL Transition Date: 2009-2010 aid year Summer is header System: Banner Use resources – other schools! Contacted seasoned DL schools

  7. Decision to go DL Student-centered reasoning Students lost banks in summer and fall 2008 Concern – dual servicers Administration approval Proposal to move to DL Previous experience with push-back from banks Received go ahead mid-December 2008

  8. Communicate, Communicate, Communicate Owens community Student Accounts (Bursar) New fund code Understanding student’s bill Finance Office New fund code Draw vs. EFT Your Office Job descriptions? Job responsibilities

  9. Communicate, Communicate, Communicate Students FAQ section on Web Letter to all currently enrolled students – March 2009 Student newspaper article – April 2009 Requirement on self-service for DL MPN

  10. Case Study - Cincinnati Public 4-year Founded 1819 State university since 1979 Research I Uptown Campus (8 colleges) Academic Health Center (4 colleges) 2 branch campuses (2-year programs) 39,000 (2009) 85% retention (2009) 26,000 aid recipients $300 Million 19 staff in SFAO (+ One Stop)

  11. Transition to DL Transition Date: July 1, 2010 Summer is a trailer Obvious concerns with summer 2010 processing Systems: Financier (Wolffpack) & UniverSIS (UC) Adjustment of loan processing Movement of “receipt of funds” from Bursar to Student Financial Aid Return to Title IV to remain with Bursar 1 additional staff member

  12. Student Focus Plan Basic plan to hit students from many angles Evolving as we encounter issues Began 3/31 Immediately after passage of reconciliation bill Multiple fronts Passive Active

  13. Web Updates Know your audience Update of loan process Decision to keep old pages/process Need FFEL pages for continuing 2010 processing Summer 2010 – don’t delay Updates wherever loans mentioned “Direct” with subsidized, unsubsidized, PLUS Lender info, interest rates, origination fees, FFEL MPN & LEC, etc.

  14. Web Updates New pages Direct Lending overview Summer 2010 loans Mirrored FFEL processing pages Cross-linked Post-7/1 Remove FFEL-directed pages Update cross-links “Past loans” info overview

  15. Award Offer Updates Web awards Language in paragraphs Links for details on loan process Stafford & PLUS unlinkage with Great Lakes Paper awards No updates since 2004 Description of process

  16. Additional Passive Approaches One Stop Website Student newspaper articles Blackboard messaging Conversations with students Updates to faculty & staff New Student Enrollment Network E-Currents

  17. Time to Get Aggressive Recent Changes to ED Websites Review to best advise Data updates LEC MPNs Allows for targeted campaigns

  18. Direct Mail Approach Emails Different content for new v. returning students Simple, bi-weekly reminders with links to Web Congrats to completers Status check with each contact Phone calls Hiring of students Train in DL MPN/Credit Check/LEC Web Alert borrowers and offer assistance

  19. Next Steps Understanding where your loans reside FFEL/PUT/DL Lessen confusion prior to exit counseling Exit Counseling Re-examine approach Concerns regarding “consolidation for simplicity”

  20. Servicing to Change for All Servicing approaches still being worked out by ED Multiple servicers Will loans from FFEL/PUT/DL move together? Will one call be possible? Will confusion cause consolidation? Exit counseling information will need updating

  21. Idea Sharing Discussion Resources Experiences Comments Questions

  22. Contact Info Betsy Johnson betsy_johnson@owens.edu 567-661-7883 Randy J. Ulses randy.ulses@uc.edu 513-556-3511

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